WELL POSITIONED FOR IMPROVING MARKETS
Highlights
- Loss before tax of £193.8 million (2010: profit before tax of £259.2 million)
- Net catastrophe losses of £500.8 million, relative to expected catastrophe losses of £170 million
- Negative return on equity of 8.6% (2010: positive 13.9%), with five year weighted average return of 14.7% (2010: 24.7%)
- Investment return of £40.5 million, equivalent to 0.9% (2010: £175.0 million, 4.0%)
- Combined ratio of 108% (2010: 89%), includes 27% generated by major catastrophe losses
- Reserve releases of £112.6 million (2010: £156.5 million)
- Dividend (paid and proposed/declared) maintained at 23.0 pence per share
- Net tangible assets per share decreased 22.4% to 243.0 pence (2010: 313.2 pence)
- Capital £402.7 million above assessed capital requirement at 31 December 2011 (2010: £695.9 million)
Roger Taylor has decided to retire as Chairman following the 2012 AGM - Richard Davey will succeed him
Charles Philipps, Chief Executive, commented as follows:
"2011 was an exceptionally challenging year for Amlin in which the quality and professionalism of our service to clients was amply demonstrated. While catastrophe claims were a primary focus during the year, importantly, we continued to make strategic progress. Our strong balance sheet and leading market position means that we are already benefiting from the improving trading environment and are well placed to resume the delivery of good returns for Shareholders.
"Overall, with the underlying profitability of our core business in London in 2011, an improving rating environment in reinsurance and UK motor in particular, the expectation of better performance at ACI and the capital to support our planned growth in premiums, we expect to return to a good level of profitability in 2012."
